The paper examines the extent to which the inflow off oreign direct investment (FDI) helps Poland to catch up with the EU.

FDI can facilitate the process of catching up mainly through transfer and diffusion of technology, which leads to upgrading oftechnological and innovative potential ofa host country. The paper is aimed at assessing whether FDI is correlated with the innovation processes in different branches ofthe Polish industry. A regression analysis conducted in this paper has confirmed that, except for low-technology industries, FDI impacts Poland’s innovation efforts and thus helps Poland to catch up with the EU.

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